Accounting is an inherent part of the life of a business, regardless of its size, legal form, and sector of activity. However, it is not compulsory to call on a chartered accountant to ensure its maintenance or to carry out all the administrative formalities associated with it.
You have every right to manage all of your accounting yourself. On the other hand, this task often proves to be very complex, and entrepreneurs rarely manage to carry it out in the best conditions.
Thus, it is recommended to use the services of an accounting firm. Wondering what missions to entrust them with? Let’s take a look: –
The fields of intervention of a chartered accountant
Unlike an accountant who has the status of an employee, the chartered accountant is an external service provider who only intervenes when duty calls.
The regularity of his intervention depends on the terms of the contract he has signed with a particular company.
In general, he carries out very specific missions on predetermined dates (like the closing of the annual accounts at the end of each financial year).
He keeps the accounts, carries out checks, gives advice, and assesses the legality of his client’s documentation. This expert intervenes at all stages of a company’s life and is also needed when the company is created, taken over, dissolved, or liquidated.
The chartered accountant represents a real ally in ensuring the proper functioning and sustainability of a business. However, its performance depends mainly on its skills, know-how, and responsiveness.
The general composition of an accounting firm
Within an accounting firm, there is at least one accountant. He is assisted by a bookkeeper, an auditor, a management controller, and a payroll manager.
The more the firm has an experienced, diverse, and dynamic team, the more likely it is to break into its sector and meet all your needs.
It will certainly be well seen by its target audience and will attract many more customers. However, the reputation of an accounting firm plays a huge role in its favor.
If one of your relatives or partners has recommended a particular organization to you, that’s a good sign. Take this into consideration when looking for an accounting specialist for your business. Be sure to choose a firm that is well-equipped, competent, and professional.
Keeping your accounts
The main mission of an accounting firm is to keep the accounts of your business. This consists of:
- record the different flows of your cash (inflows and outflows of money),
- collect information relating to your financial movements,
- analyze the relevance of the data obtained,
- prepare your financial reports,
- check your accounting books and accounts by establishing bank reconciliations, checking supporting documents, and justifying supplier (and customer) accounts,
- draw up your annual accounts.
In a few words, the accounting firm carries out all the accounting obligations incumbent on your company. However, if you wish, you can limit its activities to only certain features of your accounting. All you have to do is discuss it beforehand with the director of the firm and specify the terms of execution of the service contract.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
Posted by
CA Aman Aggarwal
AKGVG & Associates